Why rigorous control of supplier invoices?
Managing supplier invoices is a key lever for financial optimization and compliance for SMEs and freelancers in French-speaking Switzerland. Common mistakes (omissions, double payments, incorrect VAT recovery) can lead to direct losses and tax or administrative penalties. Setting up a simple, rigorous, and documented process is therefore essential.
Step 1: Centralize invoice receipt
- Preferred channels: use a dedicated email address (e.g., invoices@your-company.ch) or a digital mailbox (ERP system or Odoo).
- Automation: use a scanner and document management solution to avoid forgetting or losing paper invoices.
Tip: Always request an electronic copy from your suppliers.
Step 2: Quick guide to checking mandatory information
Before any payment, check the presence of the following information (mandatory to deduct VAT):
- Full supplier identity (name, address, VAT number)
- Invoice number and date
- Precise description of billed goods or services
- Net amount, rate and amount of VAT (if applicable)
- Clear company name on the invoice
- "Self-billing" mention if applicable (services from abroad)
To avoid: Paying an incomplete invoice may result in VAT deduction refusal. See the official list at the Federal Tax Administration.
Step 3: Examples of concrete mistakes to avoid
- Missing supplier VAT number: e.g., a Geneva SME receives an invoice for CHF 5,000 without the Swiss supplier's VAT number; VAT recovery is impossible.
- Inconsistent amount: e.g., supplier invoice indicates "VAT 0%" while the activity is taxable in Switzerland; check this!
- Invoices in foreign currencies: Use the official rate of the Swiss National Bank for conversion (payment or service date). Document the applied rate on each item.
Step 4: Validation and payment approval – simple yet robust process
- Double verification by at least two people (typical case: preparer then director or fiduciary signature)
- Systematic recording in the accounting tool upon receipt (not at payment)
Advice: Use Odoo or another ERP to digitally record the payment approval; each step is tracked, with simplified access to histories.
Step 5: Invoice due dates follow-up and optimizations
- Due date tracking table: avoid delays, anticipate cash outflows (Excel, Odoo, or dedicated tool)
- Discounts or rebates: Take advantage of negotiated payment terms and document each case in item comments.
Recurring error: Forgetting a discount leads to unnecessary direct costs.
Step 6: Correct VAT recovery
- Ensure VAT is indicated and the supplier is actually liable; check on the official VAT register.
- Correlation between service and business use: any private expense is non-deductible.
Pitfall to avoid: VAT on business meals is deductible only up to 50% maximum and only with a compliant invoice.
Practical tools & downloadable checklist
Summary
Rigorous management and control of supplier invoices secure VAT recovery, limit errors, and optimize the cash flow of small businesses. Update your processes each year to integrate tax changes and seek professional support for complex situations.
Our Ark Fiduciaire experts support you in setting up robust controls adapted to your size and sector.